{"id":30309,"date":"2017-01-01T16:07:59","date_gmt":"2017-01-01T06:07:59","guid":{"rendered":"https:\/\/agenticus.com\/the-hidden-cost-of-marketing-non-working-spend\/"},"modified":"2024-11-13T15:47:45","modified_gmt":"2024-11-13T05:47:45","slug":"the-hidden-cost-of-marketing-non-working-spend","status":"publish","type":"post","link":"https:\/\/agenticus.com\/the-hidden-cost-of-marketing-non-working-spend\/","title":{"rendered":"The Hidden Cost of Marketing \u2013 Non-Working Spend"},"content":{"rendered":"

I came across an extraordinary report last week. Produced by global marketing platform provider Percolate, the report focuses on the hidden cost of marketing \u2013 non-working spend. You can download a copy of the report here<\/a>.<\/p>\n

The average marketing budget allots only 48% to advertising<\/h2>\n

Percolate mostly deals with large global brands. I know for sure that most small businesses don\u2019t spend anything like 52% of their marketing budget on non-working spend \u2013 but maybe they should. Let\u2019s dig a bit deeper on what non-working spend actually is.<\/p>\n

Non-working advertising spend<\/h3>\n

In a nutshell, non-working spend is the money spent on creative \u2013 not putting it in front of an audience (i.e. what you spend directly on advertising)<\/em>. Think of the cost of creating and maintaining your website, graphic design and printing of brochures, creating content for blogs posts, agency costs, performance monitoring and measurement expenses and the myriad other items that eat into your marketing budget that are not direct advertising spend.<\/p>\n

Working advertising spend<\/h3>\n

Working advertising spend is what you invest directly on distributing the content you create \u2013 be it postage, paid ads on Google and Facebook, print-based ads, radio and TV commercials or the million other advertising options which exist. Working advertising spend is an expenditure that directly delivers your message to your audience.<\/p>\n

Why SME\u2019s need to invest more on non-working advertising spend<\/h3>\n

Put bluntly, the typical small business generally lacks the internal skills (and time)<\/em> to develop marketing strategies that predictably deliver new customers and a sustainable return on investment from advertising. Even those businesses that have a capacity to develop strong marketing strategies<\/a> rarely have the internal resources to successfully execute tactics (most notably in the digital realm)<\/em>, monitor, measure and manage their marketing plans to success.<\/p>\n

The Percolate report is very focused on reducing non-working advertising costs. For large corporations with internal marketing departments and vast amounts of capital invested in branding and the like, that makes a lot of sense. It makes almost no sense at all for a business where the owner writes boring copy for the company website and the receptionist designs (ugly and ineffective)<\/em> marketing collateral, using Microsoft Publisher. These businesses need to spend more on their non-working advertising spend \u2013 generally a whole lot more.<\/p>\n

Non-working advertising spend is a long-term investment<\/h3>\n

Think of it like this – what\u2019s more likely to elicit a positive response from prospects; a poorly designed website built by your next door neighbours 12-year-old \u2013 or a professionally designed website built by people who know how to sell ice to Eskimos?<\/p>\n

If you\u2019re going to spend money on bringing people to your website, you might as well make the investment in fully optimised pages and a well-crafted message.<\/em><\/p>\n

The same principle applies to researching your market, development of your primary value proposition, creation of an ROI-focused marketing strategy, selection of worthwhile marketing tactics, management and monitoring of your marketing and advertising campaigns \u2013 and most of all \u2013 investing in the people who bring all of that to life.<\/p>\n

A final word<\/h3>\n

Modern marketing is complex. That\u2019s especially the case in the world of digital marketing. One standalone tactic like AdWords, or SEO, or running Facebook ads is unlikely to work for your business anymore. You need a strongly focused and cohesive strategy that drives your decisions on what tactics to implement. You\u2019ll also need a good team around you to advise upon, execute and manage your plan.<\/p>\n

For smaller businesses, your non-working advertising spend may prove to be the decisive factor in whether your marketing plan succeeds or fails. Hire skilled people internally, or outsource your marketing to a company that has the expertise and people to make your plan work. Either way, you need to budget for the hidden cost of marketing – your non-working marketing spend.<\/p>\n

This article was originally published on tonygavin.com<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

I came across an extraordinary report last week. Produced by global marketing platform provider Percolate, the report focuses on the hidden cost of marketing \u2013 non-working spend. You can download…<\/p>\n","protected":false},"author":1,"featured_media":30310,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_theme","format":"standard","meta":{"footnotes":""},"categories":[250,289,310],"tags":[],"class_list":["post-30309","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advertising","category-marketing","category-tactics"],"_links":{"self":[{"href":"https:\/\/agenticus.com\/wp-json\/wp\/v2\/posts\/30309","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/agenticus.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/agenticus.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/agenticus.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/agenticus.com\/wp-json\/wp\/v2\/comments?post=30309"}],"version-history":[{"count":3,"href":"https:\/\/agenticus.com\/wp-json\/wp\/v2\/posts\/30309\/revisions"}],"predecessor-version":[{"id":30546,"href":"https:\/\/agenticus.com\/wp-json\/wp\/v2\/posts\/30309\/revisions\/30546"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/agenticus.com\/wp-json\/wp\/v2\/media\/30310"}],"wp:attachment":[{"href":"https:\/\/agenticus.com\/wp-json\/wp\/v2\/media?parent=30309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/agenticus.com\/wp-json\/wp\/v2\/categories?post=30309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/agenticus.com\/wp-json\/wp\/v2\/tags?post=30309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}